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The Quarterly Survey of Small Business in Britain: A History

Policy recognition of the economic, political and social importance of small firms in Britain traces its roots back 40 years to the publication of the Bolton Report in 1971. Chaired by John Bolton, a successful and publicly-spirited industrialist, the Bolton Report also marks the conception of the Quarterly Survey of Small Business in Britain. Frustrated by the lack of accessible and consistent good quality data on Britain’s small business sector, the research director and principal author of the Report, Graham Bannock, strongly recommended that a regular survey of the small business sector be established in order to inform researchers and policy makers. With a mix of some public and mainly private sector funding and after a long gestation period, the Quarterly Survey was eventually born in 1984 under the direction of its inspirer, Graham Bannock. Making up for lost time, the Quarterly Survey has produced a report on the state of Britain’s small businesses every quarter ever since.

In the beginning, with entrepreneurship as an academic discipline in its infancy, the focus of the special topics each quarter was very much led by the concerns of financial institutions, interested government departments and bodies such as the Bank of England, Companies House, House of Commons Library, National Audit Office and so on. As academic, political and public policy interest in entrepreneurship and small business management grew, so too did the focus and reach of the Quarterly Survey. With this broadening of interest also came a significant shift in location when then Open University Business School Dean, Andrew Thomson, offered to host the Quarterly Survey in 1989. Some 20 years later, with an increase in enterprise activities across the University, the Dean at the time Professor James Fleck welcomed the Quarterly Survey formally into the Open University as a core element in its enterprise research.     

The Quarterly Survey has been used widely as an economic barometer since it began in 1984. It has been and remains an important resource for SME academics, policy –makers and professional support practitioners (such as accountants, bankers, consultants and lawyers).  It reveals quarterly and longer term trends on entrepreneurship and key small business issues. It also provides benchmarks for gauging SME regional, sector and size-related performance. The survey findings are regularly reported in the national press and other media. In addition, each quarterly report contains a feature section on a selected small business issue.  Recent features have included the impact of the ‘credit crunch’; how entrepreneurial and non-entrepreneurial small firms differ in their approaches to growth and the recession; sources of advice on business and regulation compliance; environmental performance and changing use of information and computing technologies. 

The Quarterly Survey is the longest established report focused entirely on small businesses in Britain. It owes its survival and success to its historic knowledge of the SME sector; its dedicated and loyal research/production team, and the long term support from the Open University and from its main sponsors - ACCA (Association of Chartered Certified Accountants) and Barclays Bank. Together we have helped forge a worthy legacy of the Bolton Report.

 

Emeritus Professor Colin Gray

For more information about John Bolton, who was also very influential on the evolution of management development in Britain, contact former OUBS Dean Professor Andrew Thomson who is writing his biography.

Timeline

1971     Bolton Report ‘The Committee of Inquiry on Small Firms in Britain’ published November 1971. Amongst the findings quotes “We believe that the health of the economy requires the birth of new enterprises in substantial numbers and the growth of some to a position from which they are able to challenge and supplant the existing leaders of industry. We fear that an economy totally dominated by large firms could not for long avoid ossification and decay…”

1983     Small Business Research Trust (SBRT) founded under Sir Charles Villiers, (Honorary Chairman and Trustee) with Stan Mendham, Forum of Private Business (Vice Chairman and Trustee)

1984     Quarterly Survey of Small Business in Britain founded by Graham Bannock as first regular UK survey of small firms.

1985     First quarterly report published May. The Guardian reports (24 May 85) “Plugs a long existing information group for policy-makers in the small business sector”.
John Stanworth appointed Director General and Colin Gray, Deputy Director General of Small Business Research Trust..

1988    Beverley Dash joins SBRT as Projects Manager and stays in post until SERTeam closes in 2008.

1989      Stan Mendham appointed Honorary Chairman of SBRT, which moves to the Open University Business School. Colin Gray joint editor with Graham Bannock. (Quarterly Survey reports high interest rates as the most important problem).

SBRT Annual report quotes: Quarterly Survey is valued as an effective tool to small business. Topics covered during the year include: Employee Turnover, National Chamber of Trade Survey, National Westminster Digest Survey, The effects of 1992 on small firms, Intergenerational and previous business background of respondents and Origins of new employees.

1990      June – Julie Sullivan joins SBRT to provide administrative services and, through all the changes, is still in post.

1991     Andrew McCann joins Graham Bannock and Partners (GB&P), where his duties include work on the Quarterly Survey.

John Stanworth and Colin Gray edit Bolton 20 Years on: The small firm in the 1990’s (SBRT/Paul Chapman)

The Guardian reports (3rd Quarter 1991). “Two out of five firms – up from 35% in the previous quarter reportthe effect of the recession on cashflow and profits. Problems surrounding payments and debtors have moved into second place, being quoted by one in eight. Late payment is another important factor”.

1996     Andrew McCann starts consultancy, McCannics but remains responsible for production and research of re-titled NatWest/Small Business Research Trust Quarterly Survey of Small Business in Britain. 

2003     Small Enterprise Research Team (SERTeam) founded. Graham Bannock appointed Chairman.
Bank of England Quarterly Report series, which included key QS findings since the 1980s, ended in October.

2004     Quarterly Survey re-titled NatWest/SERTeam Quarterly Survey of Small Business in Britain.

2006 -   Colin Gray appointed executive Chair of SERTeam. January 23/PR Newswire: “Small Businesses have embraced new technology such as Broadband and wireless networking according to the latest NatWest/SERTeam Quarterly Survey of Small Business in Britain. In less than two years, the proportion of small firms with a broadband ADSL connection has doubled to 56 percent, making this the most common form of internet connection”

2007     Title reverts to Quarterly Survey of Small Business in Britain after some 20 years of NatWest sponsorship ends.

2008     SERTeam closes in December 2008 after 24 years of independent operations and following a strong year with support from Barclays Bank, the Department of Business, Enterprise and Regulatory Reform (BERR) and the Finance and Leasing Association (FLA).

2009     The Quarterly Survey formally becomes part of The Open University Business School and a new sponsorship arrangement with Barclays Bank (joined later by the Association of Chartered Certified Accountants – ACCA) begins.

2010     Richard Blundel joins Colin Gray as joint editor of the Quarterly Surveys. Andy McCann remains principal researcher writer and Julie Sullivan continues as the project’s Administrator. 

2011     Quarterly Survey is an Open University report sponsored by Barclays Business and ACCA (Association of Chartered Certified Accountants).